United Utilities to pay 30p dividend

22nd Jul 2011 07:24

Water group United Utilities will pay a total dividend of 30p a share for the first year of the new five-year regulatory regime and plans to continue with its policy of paying a dividend 2% ahead of inflation, as measured by the Retail Price Index.Recent trading has been in line with expectations, the company, which provides water and wastewater services to nearly 7m Liverpudlians, Mancunians and others in the north west of England, said. Revenues have been higher, though this has been offset by some inflationary cost pressures, the company said. It added that it is well prepared for the transfer of private sewers and drains to the water and sewerage companies that is scheduled to take place from 1 October. The company said its financial position remains robust. Net debt has grown slightly since 31 March due to high levels of capital investment, the company said."The group expects to deliver a sound underlying financial performance for 2011/ 12, despite ongoing cost pressures," the company said. "United Utilities has a clear focus on improving operational performance and outperforming its regulatory contract, and the company's efficiency initiatives are progressing well."